Behind on Payments?
You Still Have Options.

Washington is a non-judicial foreclosure state, meaning your lender doesn't need a court order to foreclose. Here's the typical timeline:

Missed payments (Month 1-3): Your lender sends late notices and may assess fees. Most lenders won't begin formal proceedings until you're 90-120 days behind.

Notice of Default (Month 4): Your lender files a formal notice that you're in default. In Washington, they must also send you a letter about foreclosure mediation — you have the right to request it.

Notice of Trustee Sale (Month 5-6): If you haven't cured the default or reached an agreement, the trustee records a Notice of Sale. By law, the auction can't happen sooner than 120 days after this notice.

Auction (Month 8-10): The property is sold at a public auction. Once sold, you have no right of redemption in Washington — the sale is final.

The entire process typically takes 6-10 months from your first missed payment to the auction. The earlier you act, the more options you have.

They sound similar but work very differently:

Mortgage foreclosure happens when you fall behind on your mortgage payments. Your lender initiates the process, and the timeline above applies.

Tax foreclosure happens when you fall behind on property taxes. In Washington, counties can begin the tax foreclosure process after three years of unpaid taxes. The county files a certificate of delinquency, and eventually the property is sold at a tax lien auction.

Tax foreclosures often catch homeowners off guard because the timeline is longer — you might owe three years of back taxes before anything happens, then suddenly receive a notice that your property will be auctioned.

We can help with both situations. For tax foreclosures, the math is often simpler — you may have significant equity even after paying the back taxes, and a quick sale can preserve that equity instead of losing the property at auction for pennies on the dollar.

A deed in lieu of foreclosure is when you voluntarily transfer ownership of your home to your lender in exchange for being released from your mortgage obligation. It's a third option beyond selling or letting the foreclosure proceed.

Pros: Avoids the formal foreclosure process, may look slightly better on your credit report, and the lender may waive any deficiency balance.

Cons: You walk away with nothing — no equity, no cash. You still lose the house. And not all lenders accept it, especially if there are other liens on the property.

In almost every case, selling the property — even quickly for cash — is better than a deed in lieu. You keep any equity above what you owe, and you're in control of the timeline and terms.

If your home sells for less than what you owe — whether at auction or through a short sale — can the lender come after you for the difference?

In Washington, if your home is sold through a trustee sale (non-judicial foreclosure), your lender cannot pursue a deficiency judgment. The sale wipes the debt.

However, if the foreclosure goes through the courts (judicial foreclosure), the lender may be able to pursue the remaining balance. This is rare in Washington but does happen.

If you're considering a short sale — where we negotiate with your lender to accept less than owed — we work to get the deficiency waived in writing as part of the agreement. This protects you from any future claims.

Washington law (the Foreclosure Fairness Act) requires lenders to offer mediation to homeowners facing foreclosure. This is a meeting between you, your lender, and a neutral mediator to explore alternatives to foreclosure.

Options discussed in mediation typically include:

• Loan modification (lower payments, extended term)
• Forbearance agreement (temporary pause on payments)
• Short sale approval
• Repayment plan for missed payments

Mediation is free and can buy you time. Even if you plan to sell, requesting mediation pauses the foreclosure process while it's pending — giving you more room to close a sale before the auction.